The pound came under early pressure on Tuesday after the Royal Institute of Chartered Surveyors said its monthly house price balance dropped to 9 in March from an upwardly revised 18 in February, wrong footing economists who had forecasted a rise of 19. Data elsewhere, from the British Retail Consortium showed retail sales jumped at their fastest pace in a year in March but the figures were flattered by the earlier Easter break. This saw most holiday spending at the end of March and could have a negative effect on April’s numbers.


Despite a bright start, the euro hit lows in Tuesday’s trading against the dollar and sterling as traders trimmed long positions in the single European currency after the first Greek Treasury bill auction since this week’s bail out plan announcement. Although the sale was a success in that all bills were sold, the low yield returned could prove to be costly to the Greek Government.


Across the pond the low-yielding dollar fell overnight as upbeat earnings from technology bellwether Intel boosted appetite for riskier currencies while policy tightening by Singapore helped send the greenback lower across the board.


Today’s main focus in the economic calendar will be the Federal Reserve Chairman, Ben Bernanke, testifying. Data wise, Euro Zone industrial production alongside US CPI and retail sales head up today’s releases.